I am a new member as of today and hope someone will be able to offer some advise. I am a new mum and have been employed as a financial controller. I am not planning to return to work but am very interested in setting up my own business so i am able to still look after my son. Firstly i am only part qualified at level 3 in AAT, but have lots of experiance. My previous position included daily accounting, cash forecasting, P&L & B/S, Monthly Stats & Ratios, VAT, P11Ds, Year End Adjustments, Payroll; basically everything apart from certified accounts at year end. Is it possible to start up bookkeeping from home without any further qualifications as i do not have the time or funds available?
If so where do i start, what do i need to do and what accounting package should i use for multiply accounts? I am pretty hot on Sage but have heard that quickbooks is very good?
Please help as i need some confidience and advice!
To start a book-keeping business you do not need any professional qualifications. Given your previous experience it sounds like you are well placed to start a book-keeping business. It's always advisable to only take on work you feel comfortable with when starting out, and it's a good idea to obtain some professional indemnity insurance as well.
If you are confident using Sage then stick with it, although QuickBooks is also a solid package. Unfortunately both of these aren't cheap, and can make a big dent in your funds when setting up. There are cheaper alternatives such as VT Transaction, MS Accounting, and many online programs. A good idea is to trial a few and see which ones you feel comfortable using.
As Guy says, you certainly have the experience etc to start up on your own, but you will need to pay HMRC £95 to comply with their Money Laundering Scheme. If you have a practising certificate or such like with the ICB, IAB or AAT you would be covered by them and wouldn't have to pay it!
If you are a practising bookkeeper/accountant , you can register with the Microsoft Professional Accountants Network and you will get a free full copy of MS Accounting Pro 2008 and MS Office 97 Business Edition...worth joining if you only want a copy of Office 97!
I use Businessware (business-ware.co.uk) multi company and a much cheaper, very versatile alternative to Sage.
Thanks for your info. Its great to be able to get help and advice from other people like yourself! If i have a level 3 AAT Certificate would i still have to pay the £95?
AAT scheme for members in practice If you are a full or fellow AAT member and you are offering accountancy, taxation or related consultancy services* to the public you must become an AAT member in practice. What does the AAT mean by being in practice? Anyone who has their own business and is trading as a: Sole trader Partner in a practice or a limited liability partnership Director of, or shareholder in, a limited company If you are an AAT student you: Can set up in practice but cannot advertise in connection with the AAT Must only undertake work within your competence & seek professional advice when necessary Must abide by the AATs Guidelines on Professional Ethics** Are strongly recommended to have professional indemnity insurance The AAT operates the scheme in order to: Regulate all full & fellow members who are in practice Provide tailored support to members in practice Add creditability to your services, showing the public and the accountancy profession that you are competent and highly trained, and that you are committed to high standards of ethics and professionalism How do I apply to join scheme for members in practice? To apply for a practicing licence you will need to request an application pack from the members in practice team (or download one from the website - www.aat.org.uk/members/publications) On the application form you will be asked to: give details about your business enclose a CV to demonstrate your competence provide a copy of your professional indemnity insurance cover note provide details of the person who will act as your professional cover sign a declaration pay an £85 admission fee (£35 if your gross fee income is/estimated to be below £5000) Your application will be sent to the Licensing Panel for a decision and once approved you will receive a welcome pack which will include your practising certificate Obligations of an AAT member in practice You must abide by the Guidelines and Regulations for Members in Practice: Only undertake work you are approved to offer Abide by the Guidelines on Professional Ethics Maintain your professional indemnity insurance at the correct level Have professional cover Take steps to review your professional development needs under the AATs current CPD policy Renew your licence annually details will be sent to you On renewal you will be required to pay the annual member in practice fee for 2007 this is £134 (or £39 if your gross fee income is below £5000) Recognition in the market place Your licence demonstrates to the public that you are competent, highly trained and committed to high standards of ethics and professionalism Once approved you can use the AAT logo/wording on your business stationery Banks/building societies recognise AAT members in practice for preparing accounts for client mortgage applications You will be included in our online directory to promote your business (optional) You have access to discounted advertising with Yellow Pages & Thomsons Benefits and support for licensed members Free business support and ethics advice helplines Discounted rates for professional indemnity insurance Access to the members in practice toolkit The Professional newsletter Exclusive CPD events Access to sample business letters and contracts Exemptions You are exempt from the scheme for members in practice if:*** You only provide services on a voluntary basis You have a practising certificate with a CCAB body You only provide services on a subcontract basis to another accountant(s) and are covered by their professional indemnity insurance Services you offer are deemed by the Licensing Panel as outside the scheme Your gross fee income from providing services is below £1000 Further Information For further information please contact the members in practice team on 0845 8630788, send an email to membersinpractice@aat.org.uk or visit our website at www.aat.org.uk/members. *Accountancy - Book-keeping, Financial Accounting & Accounts Preparation, Budgeting & Forecasting, Management Accounting, Payroll Taxation - Value Added Tax, Personal Income Tax, Business Income Tax, Corporation Tax, Capital Gains Tax, Inheritance Tax Consultancy - Business Plans, Computerised Accountancy Services, Company Secretarial Services, Independent Examination **All publications available from the member in practice team or from our website www.aat.org.uk/members/publications ***You must complete an exemption form available from the members in practice team or our websitewww.aat.org.uk/members/publications
I'd agree with the others, in that it sounds like you are in a very good position to start your own bookkeeping business. The experience you have would be invaluable.
As you haven't yet finished level 3 of AAT, the £95 through HMRC would probably be the easiest way for you to get going... until you have a practice certificate (not just the qualification).
I think from memory with the AAT, you'd also need to be a full member for at least a year before they are likely to give you a practice certificate... but I'd recommend sticking with AAT and completing your qualification when you get a chance in the future.
As for software, often this can depend on what the client has if they are already using something - and if you are working from their premises. We also primarily use Sage though we don't recommend it as we feel there are better valued products out there.
MS Accounting is getting a few knocks for being very slow to use, though I think it's still worth checking out. Quickbooks is also quite good, easy to use.
E-conomic online accounting software is also very good, giving you the benefit of working alongside clients... and we have a good offer from them for our members (soon to get even better).
For the payroll side - Moneysoft is probably the single most highly recommended software for ease of use and value for money.
As for advertising the business... I'm sure I've written about it here before, and in some other forums. Having a website can certainly help as many people will want to find out what they can about you before phoning, meeting or committing to work.
Work from accountants in your area is another possibility - and you can also look at passing work to them so it can be a two-way street. Having people to talk to, ask questions can also help when you're new in business... forums are a starting point but an accountant you know can be a great source of knowledge.
Also do keep an eye on your local newspapers and jobs available - sometimes it is hard to fill a part-time bookkeeping position and outsourcing/contracting to you might be the solution for a local business needing help.
I'm sure I've a few more ideas on this if you'd like to drop me a line.
